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2008] 306 ITR 257 [2008] 174 TAXMAN 592 (SC) SUPREME COURT OF INDIA Commissioner of Income-tax *, Kolhapur v. Ratnakar Bank Ltd. DR. ARIJIT PASAYAT AND DR. MUKUNDAKAM SHARMA, JJ. CIVIL APPEAL NOS. 6088-6090 OF 2008 OCTOBER 13, 2008 Section 2(7) of the Interest-tax Act, 1974 - Interest - Assessee-bank claimed to have earned interest on Government securities - Tribunal held that interest on Government Securities was not chargeable to tax under section 2(7) - On appeal, High Court confirmed said order - Revenue challenged said order in instant appeal and disputed fact relating to nature of interest earned by contending that it was not earned on Government securities - Whether, in such circumstances, Tribunal was required to examine factual position as to whether interest involved in instant case was on Government securities and decide matter keeping into consideration ratio of decision of Supreme Court in CIT v. Corporation Bank [2008] 166 Taxman 388 - Held, yes CASE REFERRED TO CIT v. Corporation Bank [2008] 166 Taxman 388 (SC) [Para 4]. Mohan Prasaran, V. Shekhar, H. Raghavendra Rao, Gaurav Dhingra, D.L. Chidanandaand B.V. Balaram Das for the Appellant. Mrs. Jayashree Wad, Ashish Wad, Neeraj Kumar, Chirag S. Dav, Rajesh Kumar, Sathish Aggarwal, V. Prabhakar, Ramjee Prasad, M.K.D. Namboodiry, R.S. Suri, Chinmoy Khaladker, S.K. Nandy and Mrs. Revathy Raghavan for the Respondent. JUDGMENT Dr. Arijit Pasayat, J. - Leave granted. 2. Challenge in these appeals is to the of final order passed by the Bombay High Court in a group of appeals filed by the revenue under section 260A of the Income-tax Act, 1961 ('the Act') read with section 24 of the Interest-tax Act, 1974 ('Interest Act'). Question involved was whether interest earned by the assessee bank on Government securities was liable to be assessed under section 2(7) of the Interest Act? The Income-tax Appellate Tribunal ('Tribunal') held that it was not chargeable. The High Court by the impugned upheld the view of the Tribunal. The revenue filed the present appeals against the of the High Court. It was submitted by learned counsel for the appellant that the Tribunal and the High Court were not justified in holding…

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